HOMES vs. HEAR: Which IRA Home Energy Rebate Fits Your Project?
HOMES vs HEAR compared: income limits, rebate caps, eligible projects, and how each IRA home energy rebate is calculated — plus which one to choose in 2026.
Key facts
- HEAR: per-appliance rebates (heat pump $8,000, panel $4,000…), household cap $14,000, income-capped at 150% AMI
- HOMES: whole-home efficiency rebate, typically up to $8,000, open to all incomes, sized by modeled/measured energy savings
- You usually can't double-dip the same measure across both programs — states decide the details
- Both are IRA-funded, run by state energy offices, and available through September 30, 2031 or until funds run out
The one-sentence difference
HEAR pays fixed rebates for specific electric equipment if your income qualifies; HOMES pays for measured whole-home energy savings at any income. Everything else — caps, paperwork, timing — follows from that.
| Feature | HEAR / HEEHRA | HOMES |
|---|---|---|
| Income limit | ≤ 150% of AMI | None (bigger rebates below 80% AMI) |
| Rebate basis | Per measure (fixed caps) | Whole-home energy savings |
| Typical maximum | $14,000 per household | $8,000 (states can go higher for deep retrofits) |
| Energy audit required | Not usually | Yes — savings are modeled or measured |
| Best for | Replacing one or two systems | Deep retrofits combining several upgrades |
When HEAR is the right door
If your income is at or below 150% of AMI (check with our income limits guide) and your project is one big-ticket item — a heat pump, a heat pump water heater, or an electrical panel to support them — HEAR is simpler and often more generous. Note the 2026 federal update: HEAR now focuses on upgrading existing electric equipment rather than gas-to-electric conversions, and HVAC rebates may require insulation and air sealing at the same time.
When HOMES wins
Planning several upgrades at once — insulation, air sealing, windows, and equipment? HOMES rewards the combined energy savings, and there is no income test. You'll need a home energy audit first, because the rebate is sized from the modeled savings. Deeper savings, bigger rebate; low-income households get enhanced amounts.
Can you use both?
On the same project, sometimes; on the same measure, generally no. A common pattern in live states: HEAR pays for the heat pump, HOMES pays for the envelope work that an audit recommended. Your state's program rules settle it — find yours in the state-by-state tracker, then verify with the application playbook.